Laos continued to be plagued by budget deficits, experiencing a short fall of some 2 trillion kips in the fiscal year 2006-07. Official figures show expenses of over 8,115 billion kips while revenues collected totalled only 6,134 billions.
Most revenues came from import-export taxes, while less than 213 billion kips came from logging concessions. The reported expenses accounted for 99.5% of the projected budget.
In his report to the 4th ordinary session of the 6th National Legislature last month, Finance Minister Somdy Douangdy acknowledged weaknesses and inefficiencies in managing expenditures as well as revenues, resulting in unaccountability and diversion of funds. He promised better management in the current fiscal year.
Meanwhile, the Ministry of Planning and Investment reported that the government spent over 3.3 trillion kips on 2,479 development projects throughout the country last year. More than 80% of that money came from loans and financial aids provided by donor countries.
Listen to our Laos Today report for details in Lao.